First Milk has posted an increase in turnover and operating profit, with the co-op's turnover totalling £476 million, a rise of £20 million from the year before.
The co-operative has published its annual financial report for the year ending 31 March 2024, which also revealed an operating profit increase to £16.8m, up from £5.1m in 2023.
Capital investment across its sites has risen to £8.4m, up from £7.4m in 2023, and its total group capital and reserves increased to £58.5m, up from £46.7m in 2023.
First Milk said its investments in the past year have focused primarily on adding strategic capability, to provide new ways to maximise value and returns for its farmer members.
The acquisition of BV Dairy, a specialist in chilled dairy products based in Dorset, was completed in February 2024.
A new partnership was agreed with Yeo Valley, to create the Naturally Better Dairy Group, supplying a milk pool produced by regenerative dairy farmers in South-West England.
Capital expenditure increased 13.5% to £8.4m, delivering operational improvements and completing the project at First Milk’s Lake District Creamery to produce specialist protein ingredients in partnership with Arla Food Ingredients.
First Milk chief executive, Shelagh Hancock, said despite the wider economic and geopolitical challenges, the co-op had delivered healthy performance in the last year.
“Our focus remains on developing and creating value for our members, helping deliver resilience against the many challenges we face," she said.
“This year has seen us broadening our capability with capital investment to access the specialist protein market, and the strategic acquisition of BV Dairy, extending our market reach into the food service sector and product mix, into fermented products and creams.”
In addition, Ms Hancock said First Milk members have made “great strides” in the last 12 months, scaling their regenerative farming practices with the support of its customers.
She added: “I’m also encouraged to see regenerative farming becoming more widely understood and invested in across the UK food sector, with an increasing number of brands and retailers supporting its development.
“We remain confident that its tangible outcomes will help to solve the climate, nature and biodiversity crises and improve farm resilience and we are pleased to be leading in this area.
“Ultimately, our vision for the future is clear – we are working to enrich life every day to secure the future for our members, colleagues, customers and communities."
